GCI REPORTS THIRD QUARTER 2015 FINANCIAL RESULTS
Consolidated Revenue of $259 million
Adjusted EBITDA of $97 million
November 4, 2015, Anchorage, Alaska - General Communication, Inc. (“GCI”) (NASDAQ: GNCMA) today reported its third quarter 2015 results.
Growth in broadband data subscribers and ARPU coupled with strong wireless roaming drove consolidated revenues for the third quarter of 2015 to $259 million, an increase of $18 million or seven percent when compared with the third quarter of 2014.
Adjusted EBITDA for the quarter was $97 million, growing $3 million or four percent compared with the third quarter of 2014. EBITDA for the quarter was negatively affected by $4 million in AWN-related transition costs and the absence of political advertising, which was particularly strong in the third quarter of 2014. On a comparative basis, quarterly EBITDA benefited from $8 million in equipment installment plan revenue versus $7 million in the second quarter of 2015 and none in 2014. As more customers take our equipment installment plans, we are seeing a reduction in ARPU which dampens the EBITDA benefit of equipment installment revenue.
“We are pleased with our strong quarter led by roaming and backhaul revenues of $45 million”, said Ron Duncan, GCI’s president and Chief Executive Officer. “We anticipate that this quarter will represent the high water mark of those revenues for the foreseeable future. We have been working with our largest carrier customers to offer them a competitive alternative that will reduce their rates, eliminate the seasonality in our revenues, and retain significant traffic on our network. If we’re successful, we will have the majority of our roaming traffic on long-term contracts but cash receipts from roaming and backhaul could decrease by approximately 20 percent for 2016 as compared to 2015.”
Transition Highlights
The AWN transition remains on track. As of the end of the third quarter, we had transitioned nearly half of the newly acquired customers from the legacy billing platform onto our billing platform and LTE network.
Operating and Financial Highlights
Wireless:
The wireless segment posted revenues of $80 million for the quarter, representing a five percent increase over the third quarter of 2014 and an 18 percent increase over the prior quarter. Year-over-year growth was due to exceptionally strong roaming activity. Sequential growth was due to the seasonal nature of roaming.
The Wireless segment revenue detail is as follows:
|
| | | |
| ($ millions) | 3Q15 | 3Q14 | 2Q15 |
| Wholesale Wireless | 21 | 25 | 21 |
| Roaming and Backhaul | 45 | 38 | 34 |
| USF Support | 14 | 13 | 13 |
| Total Wireless Revenue | 80 | 76 | 68 |
Wireless segment adjusted EBITDA was $57 million for the quarter, an increase of $10 million or 21 percent over the third quarter of 2014, and a sequential increase of $12 million or 26 percent over the second quarter of 2015. Adjusted EBITDA growth was primarily driven by strong roaming revenue.
Wireline:
The wireline segment posted revenues of $178 million, a $14 million or eight percent increase over the third quarter of 2014 and a $1 million or one percent decline over the prior quarter.
Adjusted EBITDA for the quarter was $39 million. EBITDA declined by $7 million or 15 percent year-over-year. The EBITDA decline year-over-year was driven by AWN transition costs and the decline in cable advertising revenues due to strong political advertising in 2014.
Wireline - Consumer:
Consumer revenues were $88 million for the quarter, a year-over-year increase of $15 million or 21 percent. Revenue growth was driven by the inclusion of acquired wireless subscribers, equipment installment plan revenues, and strong growth in data subscribers and data ARPUs. On a sequential basis revenues were down $2 million. This was driven by a decline in wireless ARPUs, which are down due to migrating our acquired customers onto better plans and the effect of equipment installment plans.
Our high speed data product offerings continue to lead the market. In September, we strengthened that leadership position by launching our Gigabit red consumer data service in Anchorage. By the end of the year, all Anchorage homes passed by our cable plant will have access to this service, a first in the nation.
Wireline - Business Services:
Business Services revenues, which include broadcast and cable advertising revenues, were $52 million for the quarter, representing an $8 million or 13 percent decline over the third quarter of 2014 and a $1 million or two percent decline sequentially.
Year-over-year declines were driven in large part by a $6 million decline in video revenues associated with the strong political advertising market in 2014. The remainder of the decline is a result of rate compression in the commercial data market.
Wireline - Managed Broadband:
Managed Broadband revenues were $38 million for the quarter, representing a $6 million or 20 percent increase year-over-year and a $1 million or two percent increase sequentially. Managed Broadband continues to benefit from our significant infrastructure investments in rural Alaska.
SG&A
SG&A expenses were $83 million in the third quarter of 2015, up $10 million or 14 percent from a year ago and down slightly sequentially. Year-over-year growth is a result of AWN transition costs and incremental costs to serve our acquired wireless customers.
Other Events
During the quarter, GCI repurchased 0.4 million shares of its Class A common stock bringing the total shares repurchased in 2015 to 2.8 million.
Capital expenditures for the quarter totaled $47 million bringing our total for the year to $126 million.
2015 Guidance
Our 2015 guidance remains unchanged; however, we are expecting to end the year near the top of the revenue and EBITDA range.
| |
| • | Revenues are unchanged and in the range of $920 - 970 million. |
| |
| • | Adjusted EBITDA remains at $310 - $335 million. |
| |
| • | Core capital expenditures are unchanged and will be approximately $170 million. |
Conference Call
The company will hold a conference call to discuss the financial results on Thursday, November 5, at 2:00 p.m. (Eastern). To access the call, call the conference operator between 1:45-2:00 p.m. (Eastern) at 844-850-0551 (International callers should dial +1-412-902-4197) and identify your call as “GCI”.
In addition to dial-up access, GCI will make available net conferencing. To access the call via net conference, log on to gci.com and follow the instructions.
A replay of the call will be available for 72-hours by dialing 877-344-7529, access code 10069357 (International callers should dial +1-412-317-0088).
Forward-Looking Statement Disclosure
The foregoing contains forward-looking statements regarding GCI’s expected results that are based on management’s expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward-looking statements due to uncertainties and other factors, many of which are outside GCI’s control. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in GCI’s cautionary statement sections of Forms 10-K and 10-Q filed with the Securities and Exchange Commission.
About GCI
GCI is the largest Alaska-based and operated, integrated telecommunications provider, offering wireless, voice, data, and video services statewide. Learn more about GCI at www.gci.com.
Contacts:
Kyle Jones, 907.868.7105; kjones@gci.com
David Morris, 907.265.5396, dmorris@gci.com
# # #
|
| | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| (Amounts in thousands) | | | |
| | September 30, | | December 31, |
| ASSETS | 2015 | | 2014 |
| Current assets: | | | |
| Cash and cash equivalents | $ | 59,689 |
| | 15,402 |
|
| | | | |
| Receivables (including $0 and $27,944 from a related party at September 30, 2015 and December 31, 2014, respectively) | 189,039 |
| | 212,441 |
|
| Less allowance for doubtful receivables | 4,695 |
| | 4,542 |
|
| Net receivables | 184,344 |
| | 207,899 |
|
| | | | |
| Deferred income taxes | 49,075 |
| | 56,120 |
|
| Prepaid expenses | 13,068 |
| | 12,179 |
|
| Inventories | 10,075 |
| | 17,032 |
|
| Other current assets | 3,136 |
| | 153 |
|
| Total current assets | 319,387 |
| | 308,785 |
|
| | | | |
| Property and equipment | 2,435,768 |
| | 2,341,511 |
|
| Less accumulated depreciation | 1,350,470 |
| | 1,229,029 |
|
| Net property and equipment | 1,085,298 |
| | 1,112,482 |
|
| | | | |
| Goodwill | 239,098 |
| | 229,560 |
|
| Cable certificates | 191,635 |
| | 191,635 |
|
| Wireless licenses | 86,347 |
| | 86,347 |
|
| Other intangible assets, net of amortization | 65,053 |
| | 66,015 |
|
| Deferred loan and senior notes costs, net of amortization of $6,542 and $8,644 at September 30, 2015 and December 31, 2014, respectively | 16,969 |
| | 10,949 |
|
| Other assets | 27,791 |
| | 52,725 |
|
| Total other assets | 626,893 |
| | 637,231 |
|
| Total assets | $ | 2,031,578 |
| | 2,058,498 |
|
| | | | |
|
| | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| (Continued) |
| (Amounts in thousands) | | | |
| | September 30, | | December 31, |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | 2015 | | 2014 |
| Current liabilities: | | | |
Current maturities of obligations under long-term debt and
capital leases | $ | 11,902 |
| | 8,722 |
|
| Accounts payable (including $0 and $7,447 to a related party at September 30, 2015 and December 31, 2014, respectively) | 50,417 |
| | 76,918 |
|
| Deferred revenue | 33,917 |
| | 29,314 |
|
| Accrued payroll and payroll related obligations | 29,138 |
| | 32,803 |
|
| Accrued interest | 26,689 |
| | 6,654 |
|
| Accrued liabilities | 17,135 |
| | 14,457 |
|
| Subscriber deposits | 1,100 |
| | 1,212 |
|
| Total current liabilities | 170,298 |
| | 170,080 |
|
| | | | |
| Long-term debt, net | 1,345,098 |
| | 1,036,056 |
|
| Obligations under capital leases, excluding current maturities (including $1,832 and $1,857 due to a related party at September 30, 2015 and December 31, 2014, respectively) | 61,885 |
| | 68,356 |
|
| Deferred income taxes | 176,007 |
| | 187,872 |
|
| Long-term deferred revenue | 94,701 |
| | 85,734 |
|
| Other liabilities | 73,018 |
| | 43,178 |
|
| Total liabilities | 1,921,007 |
| | 1,591,276 |
|
| | | | |
| Commitments and contingencies | | | |
| Stockholders’ equity: | |
| | |
|
| Common stock (no par): | |
| | |
|
| Class A. Authorized 100,000 shares; issued 35,850 and 37,998 shares at September 30, 2015 and December 31, 2014, respectively; outstanding 35,824 and 37,972 shares at September 30, 2015 and December 31, 2014, respectively | — |
| | 13,617 |
|
| Class B. Authorized 10,000 shares; issued and outstanding 3,154 and 3,159 at September 30, 2015 and December 31, 2014, respectively; convertible on a share-per-share basis into Class A common stock | 2,664 |
| | 2,668 |
|
| Less cost of 26 Class A common shares held in treasury at September 30, 2015 and December 31, 2014 | (249 | ) | | (249 | ) |
| Paid-in capital | (4,931 | ) | | 26,773 |
|
| Retained earnings | 82,020 |
| | 124,547 |
|
| Total General Communication, Inc. stockholders' equity | 79,504 |
| | 167,356 |
|
| Non-controlling interests | 31,067 |
| | 299,866 |
|
| Total stockholders’ equity | 110,571 |
| | 467,222 |
|
| Total liabilities and stockholders’ equity | $ | 2,031,578 |
| | 2,058,498 |
|
|
| | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| (Amounts in thousands, except per share amounts) | 2015 | | 2014 | | 2015 | | 2014 |
| Revenues: | | | | | | | |
| Non-related party | $ | 258,573 |
| | 225,677 |
| | 731,907 |
| | 636,416 |
|
| Related party | — |
| | 15,048 |
| | 5,283 |
| | 44,991 |
|
| Total revenues | 258,573 |
| | 240,725 |
| | 737,190 |
| | 681,407 |
|
| | | | | | | | |
| Cost of goods sold (exclusive of depreciation and amortization shown separately below): | | | | | | | |
| Non-related party | 82,717 |
| | 73,971 |
| | 235,860 |
| | 212,821 |
|
| Related party | — |
| | 2,930 |
| | 881 |
| | 8,236 |
|
| Total cost of goods sold | 82,717 |
| | 76,901 |
| | 236,741 |
| | 221,057 |
|
| | | | | | | | |
| Selling, general and administrative expenses: | | | | | | | |
| Non-related party | 82,655 |
| | 71,717 |
| | 249,090 |
| | 211,144 |
|
| Related party | — |
| | 1,066 |
| | 540 |
| | 3,348 |
|
| Total selling, general and administrative expenses | 82,655 |
| | 72,783 |
| | 249,630 |
| | 214,492 |
|
| | | | | | | | |
| Depreciation and amortization expense | 45,157 |
| | 41,705 |
| | 135,563 |
| | 127,843 |
|
| Software impairment charge | 2,571 |
| | — |
| | 29,839 |
| | — |
|
| Operating income | 45,473 |
| | 49,336 |
| | 85,417 |
| | 118,015 |
|
| | | | | | | | |
| Other income (expense): | | | | | | | |
| Loss on extinguishment of debt | — |
| | — |
| | (27,700 | ) | | — |
|
| Interest expense (including amortization of deferred loan fees) | (21,088 | ) | | (17,848 | ) | | (64,473 | ) | | (54,229 | ) |
| Impairment of equity method investment | — |
| | — |
| | (12,593 | ) | | — |
|
| Derivative instrument unrealized income (loss) | 30 |
| | — |
| | (5,040 | ) | | — |
|
| Other | 1,202 |
| | (563 | ) | | 2,445 |
| | (1,709 | ) |
| Other expense, net | (19,856 | ) | | (18,411 | ) | | (107,361 | ) | | (55,938 | ) |
| | | | | | | | |
| Income (loss) before income taxes | 25,617 |
| | 30,925 |
| | (21,944 | ) | | 62,077 |
|
| Income tax (expense) benefit | (8,122 | ) | | (5,078 | ) | | 4,957 |
| | (8,629 | ) |
| Net income (loss) | 17,495 |
| | 25,847 |
| | (16,987 | ) | | 53,448 |
|
| | | | | | | | |
| Net income (loss) attributable to non-controlling interests | (136 | ) | | 15,932 |
| | 278 |
| | 36,466 |
|
| Net income (loss) attributable to General Communication, Inc. | $ | 17,631 |
| | 9,915 |
| | (17,265 | ) | | 16,982 |
|
| | | | | | | | |
| Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class A common share | $ | 0.45 |
| | 0.24 |
| | (0.45 | ) | | 0.41 |
|
| Basic net income (loss) attributable to General Communication, Inc. common stockholders per Class B common share | $ | 0.45 |
| | 0.24 |
| | (0.45 | ) | | 0.41 |
|
| Diluted net income (loss) attributable to General Communication, Inc. common stockholders per Class A common share | $ | 0.44 |
| | 0.24 |
| | (0.45 | ) | | 0.41 |
|
| Diluted net income (loss) attributable to General Communication, Inc. common stockholders per Class B common share | $ | 0.44 |
| | 0.24 |
| | (0.45 | ) | | 0.41 |
|
| Common shares used to calculate Class A basic EPS | 34,031 |
| | 36,220 |
| | 35,037 |
| | 36,149 |
|
| Common shares used to calculate Class A diluted EPS | 38,115 |
| | 39,528 |
| | 38,195 |
| | 39,457 |
|
|
| | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| SUPPLEMENTAL SCHEDULES |
| (Unaudited) |
| (Amounts in thousands) | | | | | | |
| | Third Quarter 2015 | | Third Quarter 2014 |
| | Wireless | Wireline | | | Wireless | Wireline | |
| | Segment | Segment | Total | | Segment | Segment | Total |
| Revenues | | | | | | | |
| Wireless | $ | 80,424 |
| 21,487 |
| 101,911 |
| | 76,398 |
| 8,823 |
| 85,221 |
|
| Data | — |
| 100,245 |
| 100,245 |
| | — |
| 92,208 |
| 92,208 |
|
| Video | — |
| 32,959 |
| 32,959 |
| | — |
| 38,328 |
| 38,328 |
|
| Voice | — |
| 23,458 |
| 23,458 |
| | — |
| 24,968 |
| 24,968 |
|
| Total | 80,424 |
| 178,149 |
| 258,573 |
| | 76,398 |
| 164,327 |
| 240,725 |
|
| | | | | | | | |
| Cost of goods sold | 18,031 |
| 64,686 |
| 82,717 |
| | 24,021 |
| 52,880 |
| 76,901 |
|
| | | | | | | | |
| Contribution | 62,393 |
| 113,463 |
| 175,856 |
| | 52,377 |
| 111,447 |
| 163,824 |
|
| | | | | | | | |
| Less SG&A | 5,115 |
| 77,540 |
| 82,655 |
| | 5,336 |
| 67,447 |
| 72,783 |
|
| Share-based compensation | — |
| 2,660 |
| 2,660 |
| | — |
| 2,153 |
| 2,153 |
|
| Accretion | 126 |
| 65 |
| 191 |
| | 238 |
| 121 |
| 359 |
|
| Other | — |
| 474 |
| 474 |
| | — |
| (359 | ) | (359 | ) |
| Adjusted EBITDA | $ | 57,404 |
| 39,122 |
| 96,526 |
| | 47,279 |
| 45,915 |
| 93,194 |
|
|
| | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| SUPPLEMENTAL SCHEDULES |
| (Unaudited) |
| (Amounts in thousands) | | | | | | |
| | Third Quarter 2015 | | Second Quarter 2015 |
| | Wireless | Wireline | | | Wireless | Wireline | |
| | Segment | Segment | Total | | Segment | Segment | Total |
| Revenues | | | | | | | |
| Wireless | $ | 80,424 |
| 21,487 |
| 101,911 |
| | 67,940 |
| 22,952 |
| 90,892 |
|
| Data | — |
| 100,245 |
| 100,245 |
| | — |
| 98,895 |
| 98,895 |
|
| Video | — |
| 32,959 |
| 32,959 |
| | — |
| 33,542 |
| 33,542 |
|
| Voice | — |
| 23,458 |
| 23,458 |
| | — |
| 24,199 |
| 24,199 |
|
| Total | 80,424 |
| 178,149 |
| 258,573 |
| | 67,940 |
| 179,588 |
| 247,528 |
|
| | | | | | | | |
| Cost of goods sold | 18,031 |
| 64,686 |
| 82,717 |
| | 18,335 |
| 60,921 |
| 79,256 |
|
| | | | | | | | |
| Contribution | 62,393 |
| 113,463 |
| 175,856 |
| | 49,605 |
| 118,667 |
| 168,272 |
|
| | | | | | | | |
| Less SG&A | 5,115 |
| 77,540 |
| 82,655 |
| | 4,032 |
| 79,015 |
| 83,047 |
|
| Share-based compensation | — |
| 2,660 |
| 2,660 |
| | — |
| 2,613 |
| 2,613 |
|
| Accretion | 126 |
| 65 |
| 191 |
| | 154 |
| 197 |
| 351 |
|
| Other | — |
| 474 |
| 474 |
| | — |
| (188 | ) | (188 | ) |
| Adjusted EBITDA | $ | 57,404 |
| 39,122 |
| 96,526 |
| | 45,727 |
| 42,274 |
| 88,001 |
|
|
| | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| SUPPLEMENTAL SCHEDULES |
| (Unaudited) |
| (Amounts in thousands) | | | | | | |
| | Nine Months Ended September 30, 2015 | | Nine Months Ended September 30, 2014 |
| | Wireless | Wireline | | | Wireless | Wireline | |
| | Segment | Segment | Total | | Segment | Segment | Total |
| Revenues | | | | | | | |
| Wireless | $ | 207,568 |
| 62,643 |
| 270,211 |
| | 208,312 |
| 24,208 |
| 232,520 |
|
| Data | — |
| 295,586 |
| 295,586 |
| | — |
| 268,296 |
| 268,296 |
|
| Video | — |
| 100,140 |
| 100,140 |
| | — |
| 105,207 |
| 105,207 |
|
| Voice | — |
| 71,253 |
| 71,253 |
| | — |
| 75,384 |
| 75,384 |
|
| Total | 207,568 |
| 529,622 |
| 737,190 |
| | 208,312 |
| 473,095 |
| 681,407 |
|
| | | | | | | | |
| Cost of goods sold | 53,897 |
| 182,844 |
| 236,741 |
| | 66,234 |
| 154,823 |
| 221,057 |
|
| | | | | | | | |
| Contribution | 153,671 |
| 346,778 |
| 500,449 |
| | 142,078 |
| 318,272 |
| 460,350 |
|
| | | | | | | | |
| Less SG&A | 13,649 |
| 235,981 |
| 249,630 |
| | 17,188 |
| 197,304 |
| 214,492 |
|
| Share-based compensation | — |
| 8,074 |
| 8,074 |
| | — |
| 6,124 |
| 6,124 |
|
| Accretion | 496 |
| 496 |
| 992 |
| | 585 |
| 376 |
| 961 |
|
| Other | — |
| (55 | ) | (55 | ) | | — |
| (481 | ) | (481 | ) |
| Adjusted EBITDA | $ | 140,518 |
| 119,312 |
| 259,830 |
| | 125,475 |
| 126,987 |
| 252,462 |
|
|
| | | | | | | | | | | | | | | | |
| General Communication, Inc. | | | | | | | | |
| Non-GAAP Financial Reconciliation Schedule | | | | | | | | |
| (Unaudited, Amounts in Thousands) | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, | | June 30, | | September 30, | | September 30, |
| | | 2015 | | 2014 | | 2015 | | 2015 | | 2014 |
| Net income (loss) | | $ | 17,495 |
| | 25,847 |
| | (15,757 | ) | | (16,987 | ) | | 53,448 |
|
| Income tax expense (benefit) | | 8,122 |
| | 5,078 |
| | (6,293 | ) | | (4,957 | ) | | 8,629 |
|
| Income (loss) before income taxes | | 25,617 |
| | 30,925 |
| | (22,050 | ) | | (21,944 | ) | | 62,077 |
|
| | | | | | | | | | | |
| Other (income) expense: | | | | | | | | | | |
| Interest expense (including amortization of deferred loan fees) | | 21,088 |
| | 17,848 |
| | 22,400 |
| | 64,473 |
| | 54,229 |
|
| Loss on extinguishment of debt | | — |
| | — |
| | 27,700 |
| | 27,700 |
| | — |
|
| Investments, net | | — |
| | — |
| | 12,593 |
| | 12,593 |
| | — |
|
| Derivative instrument unrealized (income) loss | | (30 | ) | | — |
| | 2,950 |
| | 5,040 |
| | — |
|
| Other | | (1,202 | ) | | 563 |
| | (4,390 | ) | | (2,445 | ) | | 1,709 |
|
| Other expense, net | | 19,856 |
| | 18,411 |
| | 61,253 |
| | 107,361 |
| | 55,938 |
|
| | | | | | | | | | | |
| Operating income | | 45,473 |
| | 49,336 |
| | 39,203 |
| | 85,417 |
| | 118,015 |
|
| Depreciation and amortization expense | | 45,157 |
| | 41,705 |
| | 45,171 |
| | 135,563 |
| | 127,843 |
|
| Software impairment charge | | 2,571 |
| | — |
| | 851 |
| | 29,839 |
| | — |
|
| Share-based compensation | | 2,660 |
| | 2,153 |
| | 2,613 |
| | 8,074 |
| | 6,124 |
|
| Accretion | | 191 |
| | 359 |
| | 351 |
| | 992 |
| | 961 |
|
| Other | | 474 |
| | (359 | ) | | (188 | ) | | (55 | ) | | (481 | ) |
| Adjusted EBITDA (Note 1) | | $ | 96,526 |
| | 93,194 |
| | 88,001 |
| | 259,830 |
| | 252,462 |
|
| | | | | | | | | | | |
| Notes: | | | | | | | | | | |
| (1) The sum of net income (loss), interest expense (including amortization of deferred loan fees), interest income, income taxes, depreciation and amortization expense, loss on extinguishment of debt, software impairment charge, derivative instrument unrealized (income) loss, share-based compensation, accretion expense, loss attributable to non-controlling interests resulting from New Markets Tax Credit transactions, gains and impairment losses on equity and cost method investments, and other non-cash adjustments plus imputed interest on financed devices. Adjusted EBITDA is not presented as an alternative measure of net income, operating income or cash flow from operations, as determined in accordance with accounting principles generally accepted in the United States of America. GCI's management uses Adjusted EBITDA to evaluate the operating performance of its business, and as a measure of performance for incentive compensation purposes. GCI believes Adjusted EBITDA is a measure used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multiples of current or projected Adjusted EBITDA are used to estimate current or prospective enterprise value. Adjusted EBITDA does not give effect to cash used for debt service requirements, and thus does not reflect funds available for investment or other discretionary uses. Adjusted EBITDA as presented herein may not be comparable to similarly titled measures reported by other companies. |
|
| | | | | | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES |
| (Unaudited) |
| (Amounts in thousands) | | | | | | | | | |
| | Third Quarter 2015 | | Third Quarter 2014 |
| | | Business | Managed | | | | Business | Managed | |
| | Consumer | Services | Broadband | Total | | Consumer | Services | Broadband | Total |
| Revenues | | | | | | | | | |
| Wireless | $ | 19,451 |
| 2,036 |
| — |
| 21,487 |
| | 7,989 |
| 834 |
| — |
| 8,823 |
|
| Data | 32,465 |
| 35,238 |
| 32,542 |
| 100,245 |
| | 28,755 |
| 36,857 |
| 26,596 |
| 92,208 |
|
| Video | 28,483 |
| 4,476 |
| — |
| 32,959 |
| | 27,896 |
| 10,432 |
| — |
| 38,328 |
|
| Voice | 7,420 |
| 10,316 |
| 5,722 |
| 23,458 |
| | 7,972 |
| 11,657 |
| 5,339 |
| 24,968 |
|
| Total | $ | 87,819 |
| 52,066 |
| 38,264 |
| 178,149 |
| | 72,612 |
| 59,780 |
| 31,935 |
| 164,327 |
|
| | | | | | | | | | |
| (Amounts in thousands) | | | | | | | | | |
| | Third Quarter 2015 | | Second Quarter 2015 |
| | | Business | Managed | | | | Business | Managed | |
| | Consumer | Services | Broadband | Total | | Consumer | Services | Broadband | Total |
| Revenues | | | | | | | | | |
| Wireless | $ | 19,451 |
| 2,036 |
| — |
| 21,487 |
| | 20,705 |
| 2,247 |
| — |
| 22,952 |
|
| Data | 32,465 |
| 35,238 |
| 32,542 |
| 100,245 |
| | 32,034 |
| 35,485 |
| 31,376 |
| 98,895 |
|
| Video | 28,483 |
| 4,476 |
| — |
| 32,959 |
| | 28,921 |
| 4,621 |
| — |
| 33,542 |
|
| Voice | 7,420 |
| 10,316 |
| 5,722 |
| 23,458 |
| | 7,729 |
| 10,480 |
| 5,990 |
| 24,199 |
|
| Total | $ | 87,819 |
| 52,066 |
| 38,264 |
| 178,149 |
| | 89,389 |
| 52,833 |
| 37,366 |
| 179,588 |
|
| | | | | | | | | | |
| (Amounts in thousands) | | | | | | | | | |
| | Nine Months Ended September 30, 2015 | | Nine Months Ended September 30, 2014 |
| | | Business | Managed | | | | Business | Managed | |
| | Consumer | Services | Broadband | Total | | Consumer | Services | Broadband | Total |
| Revenues | | | | | | | | | |
| Wireless | $ | 56,566 |
| 6,077 |
| — |
| 62,643 |
| | 21,840 |
| 2,368 |
| — |
| 24,208 |
|
| Data | 95,771 |
| 107,021 |
| 92,794 |
| 295,586 |
| | 83,012 |
| 107,251 |
| 78,033 |
| 268,296 |
|
| Video | 86,629 |
| 13,511 |
| — |
| 100,140 |
| | 82,016 |
| 23,191 |
| — |
| 105,207 |
|
| Voice | 22,950 |
| 31,502 |
| 16,801 |
| 71,253 |
| | 24,696 |
| 34,757 |
| 15,931 |
| 75,384 |
|
| Total | $ | 261,916 |
| 158,111 |
| 109,595 |
| 529,622 |
| | 211,564 |
| 167,567 |
| 93,964 |
| 473,095 |
|
| | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| KEY PERFORMANCE INDICATORS |
| (Unaudited) |
| | | | | | | | | | | |
| | | | | | | September 30, 2015 | | September 30, 2015 |
| | |
| | as compared to | | as compared to |
| | | September 30, | September 30, | June 30, | | September 30, | June 30, | | September 30, | June 30, |
| | | 2015 | 2014 | 2015 | | 2014 | 2015 | | 2014 | 2015 |
| Wireline Segment | | | | | | | | | |
| Consumer | | | | | | | | | |
| Data | | | | | | | | | |
| | Cable modem subscribers | 124,300 |
| 117,000 |
| 122,300 |
| | 7,300 |
| 2,000 |
| | 6.2 | % | 1.6 | % |
| Video | | | | | | | | | |
| | Basic subscribers | 113,600 |
| 115,900 |
| 112,900 |
| | (2,300 | ) | 700 |
| | (2.0 | )% | 0.6 | % |
| | Digital programming tier subscribers | 59,500 |
| 64,200 |
| 60,000 |
| | (4,700 | ) | (500 | ) | | (7.3 | )% | (0.8 | )% |
| | HD/DVR converter boxes | 110,700 |
| 105,600 |
| 108,300 |
| | 5,100 |
| 2,400 |
| | 4.8 | % | 2.2 | % |
| | Homes passed | 251,200 |
| 248,000 |
| 249,600 |
| | 3,200 |
| 1,600 |
| | 1.3 | % | 0.6 | % |
| Voice | | | | | | | | | |
| | Local access lines in service | 51,000 |
| 55,900 |
| 52,000 |
| | (4,900 | ) | (1,000 | ) | | (8.8 | )% | (1.9 | )% |
| Business Services | | | | | | | | | |
| Data | | | | | | | | | |
| | Cable modem subscribers | 14,200 |
| 14,200 |
| 14,400 |
| | — |
| (200 | ) | | — | % | (1.4 | )% |
| Voice | | | | | | | | | |
| | Local access lines in service | 47,100 |
| 47,400 |
| 47,200 |
| | (300 | ) | (100 | ) | | (0.6 | )% | (0.2 | )% |
| Consumer and Business Services Combined |
| Wireless | | | | | | | | | |
| | Consumer Lifeline lines in service | 28,100 |
| 25,600 |
| 28,400 |
| | 2,500 |
| (300 | ) | | 9.8 | % | (1.1 | )% |
| | Consumer prepaid lines in service | 27,100 |
| 11,700 |
| 26,700 |
| | 15,400 |
| 400 |
| | 131.6 | % | 1.5 | % |
| | Consumer postpaid lines in service | 146,700 |
| 91,000 |
| 151,800 |
| | 55,700 |
| (5,100 | ) | | 61.2 | % | (3.4 | )% |
| | Business Services postpaid lines in service | 30,000 |
| 18,600 |
| 29,200 |
| | 11,400 |
| 800 |
| | 61.3 | % | 2.7 | % |
| | Total wireless lines in service | 231,900 |
| 146,900 |
| 236,100 |
| | 85,000 |
| (4,200 | ) | | 57.9 | % | -1.8 | % |
|
| | | | | | | | | | | | | | | | | | | | | | |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
| KEY PERFORMANCE INDICATORS |
| (Unaudited) |
| | | | | | | | | | | |
| | | | | | September 30, 2015 | | September 30, 2015 |
| | | Three Months Ended | | as compared to | | as compared to |
| | | September 30, | September 30, | June 30, | | September 30, | June 30, | | September 30, | June 30, |
| | | 2015 | 2014 | 2015 | | 2014 | 2015 | | 2014 | 2015 |
| Wireline segment | | | | | | | | | |
| Consumer | | | | | | | | | |
| Video | | | | | | | | | |
| | Average monthly revenue per subscriber | $ | 80.85 |
| $ | 80.22 |
| $ | 84.60 |
| | $ | 0.63 |
| $ | (3.75 | ) | | 0.8 | % | (4.4 | )% |
| | | | | | | | | | | |
| Combined Consumer and Business Services | | | | | | |
| Data | | | | | | | | | |
| | Average monthly revenue per cable modem subscriber | $ | 84.87 |
| $ | 80.20 |
| $ | 83.93 |
| | $ | 4.67 |
| $ | 0.94 |
| | 5.8 | % | 1.1 | % |
| | | | | | | | | | | |
| Wireless | | | | | | | | | |
| | Average monthly revenue per subscriber | $ | 44.24 |
| $ | 50.87 |
| $ | 47.26 |
| | $ | (6.63 | ) | $ | (3.02 | ) | | (13.0 | )% | (6.4 | )% |
